. >> tom: in stark contrast to california, virginia has a budget surplus. republican governor bob mcdonnell calls his state the most business-friendly in the country. mcdonnell says low taxes and limited regulation are the keys to virginia's success. but the state also benefits from federal defense spending. while the governor thinks uncle sam should tighten the purse strings, he says protecting the country is a worthwhile investment. >> it really is about what the priorities are. do we want to spend more on entitlements and social programs and any number of other things? have health care reform that's in the trillions of dollars long-term? a $1.7 billion un-funded mandate on virginia? is that where the spending ought to go? or in a dangerous world with a fair number of people who disagree with america abroad, do we still need to maintain a fair level of defense spending? i think that's a prudent expenditure. >> tom: the complete interview with governor mcdonnell can be found on the n.b.r. web site at "nightly business report" on pbs.org. and stay tuned tom